Business

TPAO TO INVEST $2.2BN

Turkish TPAO oil company will invest $2.2 billion in the projects in Azerbaijan it is involved in: the Contract of the Century, Shah-Daniz, Araz-Alov-Sharg, Kurdashi, and the Baku-Tbilisi-Ceyhan.

The projections on Azeri, Chirag and deep-water portion of Gunashli, as well as Shah-Daniz, have been justified, according to the deputy general manager of the company Kan Suncu Bakilar. The other two projects are now in the stage of exploration.

According to Mr. Bakilar, TPAO will invest around $500 million in the ACG contract alone. He added that the company is currently active in 7 countries, but its biggest involvement is in Azerbaijan.

TPAO holds a 6.75% interest stake in the Contract of the Century, in Shah-Daniz it has 9%, in Araz-Alov-Sharg 10%, in Kurdashi 5%, and in the BTC pipeline 5.02%.

CASPIAN STATUS COMMUNIQUE SIGNED

Deputy foreign ministers of 5 littoral states members of the special working group on Caspian legal status signed a communique on preparation of the Convention on legal status of the Caspian during the group's fourth session at the Europe Hotel of Baku Friday.

Addressing the opening session, the Azerbaijan Foreign Minister Guliyev indicated that resolution of the Caspian Sea status through consensus should be sought on a stage-by-stage basis.

The minister said on the first stage the Caspian should be divided in sectors by a median line in keeping with international legal norms.

Min. Guliyev gave a positive assessment to recent bilateral and multilateral negotiations. According to him, the Baku meeting was intended to narrow the differences of the parties and adopt a draft declaration to be signed by presidents of coastal nations in October.

"It would be naive to expect that the Baku meeting could dramatically change positions of the parties, but if some of the Caspian countries reach an agreement on certain issues, the other countries will have to encourage this", the minister said.

IRAN, RUSSIA, INDIA WORKING ON "NORTH-SOUTH" RAILWAY PROJECT

Receiving the Iranian ambassador to Baku Ahad Gazai on Thursday, President Aliyev dedicated most of the meeting to the railway construction project connecting Russia with India through Azerbaijan and Iran. The head of state said he approved of the project, which was a talking point 3-4 years ago, and praised Russia, India and Iran for having signed it. He then added that it would be impossible to implement the project without Azerbaijan.

Speaking of the economic importance of the proposed railway, the Iranian ambassador said it would reduce the delivery term of cargoes from Europe to Asia by a week, which will translate into serious economic dividends.

Touching upon the restoration of the Silk Route, the President said it carried tremendous importance but could not replace the "North-South" railway line. He said he knew that Iran had allocated funds from its 2002 state budget under the railway project. "But before that can happen, it is necessary to resolve problems in our territory", he said.

ADB TO CREDIT WATER ECONOMY PROJECTS

The Asian Development Bank is discussing 5 projects on construction and restoration of melioration and water economy facilities in Azerbaijan. These include the third stage in reconstruction of the Samur-Absheron canal, completing the construction of Tovuzchay and Airichay water reservoirs, the Shamkir canal, and coastline fortification operations in Shaki-Zagatala. The projects are a part of the "Reconstruction of Azerbaijan's irrigation infrastructure" project.

According to a source from the Ministry of Finance, the projects were selected during a recent visit to Baku by the ADB coordinator for Azerbaijan Marco Gatty. The projects are expected to be discussed within one month by the bank's Board of Directors.

ADB has provided Azerbaijan with B-1 qualification, enabling the country to receive 35-40 year credits with repayment starting after the first 10 years. Azerbaijan has cooperated with ADB since 1999, but no investment projects have been implemented in the republic yet.